Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years with monthly interest of 1.05%. M enterprises issued 12 checks for 1 year and upon 3rd month, issued check was bounced. What could be the possible action of the drawee? Elaborate your answer with supporting data.
Q: A loan of $21,919 was repaid at the end of 18 months. What size repayment check (principal and…
A: Answer - Given Data, P = $ $21919 r = 10.7% = 0.107 t = 18 months = 18/12 = 1.5 yrs Formula,…
Q: What is the entry: someone lend money to my company $10,000 cash in exchange for a two-year, 6% note…
A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…
Q: A loan has been made by the bank on 31st October for 60 days to Company Trading LLC. Company Trading…
A: Journal Entry: It is used to record the business transactions of an enterprises.
Q: 1. On June 8, Williams Company issued an $70,894, 9%, 120-day note payable to Brown Industries.…
A: Interest = Value of Note * Interest Rate * No. of DaysInterest = $70,894 * 9% * 120/360Interest =…
Q: A company purchases equipment with a $20,000 note payable. The note is to be paid in $5,000 annual…
A: Usually, notes payable is to be treated as a current liability for the organization but as per the…
Q: 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years,…
A: Solution:- Given, A Bank Deposited Value = $5,000 At the end of 3 years = $5,310 Interest for 3…
Q: WHAT AMOUT SHOULD BE RECOGNIZED? Paid cash of P200,000 and issued a note for the purchase of a…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…
A: The interest amount is obtained when the loan amount is multiplied by the interest rate. Interest…
Q: 1. A lending institution charges its client Php 1,008,000 on a loan of Php 1.6M for 5 years and 3…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: CHuee Company borrows $40,000 from the local bank at 8% interest. The term of the note is 5 years,…
A: Interest means the extra amount paid over and above the principal amount of loan. Total amount…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: We need to calculate the Present Value P.V Factor = { 1 -(1+r)-n/r} x (1+r) r= interest rate = 5%…
Q: Karen Company discounted its own Php 250,000 one year note at a bank at a discount rate of 12% when…
A: The prime rate is the lending rate specified by the central bank of a country which is used as a…
Q: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an…
A: Formula: Interest amount = Loan amount x Interest rate x Time period
Q: On June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current…
A: Solution.... (a).After issuing of notes Current assets = $900,000 Current liabilities =…
Q: On June 30, Year 3, Munoz Company's total current assets were $499,500 and its total current…
A: Before transaction Working capital = current assets - current liabilities = 499500 - 272000 = 227500…
Q: In reporting the note in Karen Company statement of financial position, prior to maturity what rate…
A: Prime Rate is the interest rate charged by commercial banks to their most creditworthy customers.
Q: Mr. Poseidon Neptune, owner of Underwater Bar Inc., borrowed P350,000 at 11% from a bank to expand…
A:
Q: What is the correct debit/credit entry for... Company borrows $3 million from a bank with interest…
A: There are 3 golden rules for recording journal entry : 1. Debit what comes in , Credit what goes out…
Q: A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be…
A: Accrual Concept - According to this concept all the expenses incurred whether paid or not and all…
Q: On June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current…
A: Formulas: Working Capital = Total Current assets - Total Current liabilities Current ratio = Total…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: Given:
Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…
A: Working: Annual payment (P) = $40,000 Number of years (n) = 10 years Rate of interest (r) = 10% =…
Q: 1.Jude borrowed money from the bank.He received Php 18,000 & promised to pay Php 22,750 at the end…
A: Solution:- Given, 1). Received money = Php 18,000 Promised to pay = Php 22,750
Q: Moon Company assigned P1,500,000 of accounts receivable as collateral for a P1,000,000 loan with a…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On June 30, Year 3, Perez Company's total current assets were $495,500 and its total current…
A: 1. WORKING CAPITAL : = CURRENT ASSETS - CURRENT LIABILITIES 2. CURRENT RATIO : = CURRENT ASSETS /…
Q: Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years…
A: A drawer is a person who borrows money on credit and author of the check. A payee is a person on…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: Given the certain rate of return, present value (PV) is the current value of a future sum of money…
Q: A lending company charged its client P2,750 on a loan of P15,800 for 2 years and 3 months. What…
A: The rate of interest charged can be calculated with the help of simple interest function
Q: On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Bank. Principal is due on…
A: Bank service fees = Loan amount x 3% = 4000000 x 3% = 120,000
Q: Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years…
A: A personal loan is the borrowed amount of money used to cover number of personal expenses. Personal…
Q: A company that specializes in odor control made deposits of PhP 10,000 at the end of year 2, PhP…
A: The future value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an…
A: The process of creating financial statements to indicate an entity's financial condition is known as…
Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…
A: Present Value = Future Value1+in Present Value Factor @ 10% Year Present Value Factor @10% 1…
Q: On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face…
A: Proceeds of the note = Face value value of the note - discount amount
Q: A man borrowed Php 8000 from RCBC and agreed to pay the loan at the end of 9 months. The bank…
A: AMount borrowed is Php 8000 Time period is 9 months Amount received after discount is Php 5000 To…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: The amount borrowed is the present value is the discounted value of future payments. This is…
Q: At the beginning of a month, a customer owes a credit card company $8480. In the middle of the…
A: A credit card allows the holder to spend for their needs and allows them to pay at a later date…
Q: abardeen corporation borrowed 58,000 from the bank on october 1, year 1. The note had a 4 percent…
A: Note payable: Note payable refers to the liability of the business, as business borrow money against…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: Solution : Calculate the PV of the Ordinary Annuity: Payment $10,000 n 5 i 7% Present…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: Canliss Mining Company borrowed amount equals to Present value of all future payment of 10000 at the…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: Canliss would have borrowed an amount equal to the present value of $10,500 paid for 5 years @ 5%.…
Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: A loan of $21,238 was repaid at the end of 10 months. What size repayment check (principal and…
A: Interest is the amount charged for amount of of loan borrowed. Interest is also received on the…
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: The present value of the installments can be calculated using PV or Present value function in excel.…
Q: an amount of Php 5000 is deposited in a bank at 5% compounded quarterly for 3 years. After 3 years…
A: We need to use compounding interest formula first to calculated amount after 3 years A=P(1+i)n Where…
Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years with monthly interest of 1.05%. M enterprises issued 12 checks for 1 year and upon 3rd month, issued check was bounced. What could be the possible action of the drawee? Elaborate your answer with supporting data.
Step by step
Solved in 2 steps
- Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years with a monthly interest of 1.05%. M enterprises issued 12 checks for 1 year and upon 3rd month, issued check was bounced. What could be the possible action of the drawee? Elaborate your answer with supporting data. What could be the possible violation of the above scenario where they would just escape the obligation to the said bank upon the rules of commercial/ personal credit?Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years with monthly interest of 1.05%. M enterprises issued 12 checks for 1 year and upon 3rd month, issued check was bounced. What could be the possible violation on the above scenario where they would just escape the obligation to the said bank upon the rules of commercial/personal credit?1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years, the bank will pay $5,310.00 to the certificate owner. Based on a three- month interest period: What is the interest rate the bank is paying you each interest period? b) deposit? What are the nominal and effective interest rates on this certificate of
- Karen Company discounted its own Php 250,000 one year note at a bank at a discount rate of 12% when the prime rate was 10%. Required: Based on the above data, answer the following: 1. In reporting the note in Karen Company statement of financial position, prior to maturity what rate should Karen Company use for the recording of interest expense? 2. What is the journal entry?Hi there, quick question. For an loan with a capital amount of 2500, initiation fee of 315, interest rate of 5%, initiation of loan takes place 04/01/2021 and first paid date is 02/02/2021 (Active for 29 Days), the calculated interest for this period was calculated to be 360.45. Interest is calculated using compound interest. Is there a way to work backwards to obtain the formula? To determine the accuracy.The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.21% compounded semianually for 3 years. The compound amount is $ (Do not round until the final answer. Then round to the nearest cent as needed.) The interest earned is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
- A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate of 12% paid at maturity and maintain, in its checking account, a compensating balance equal to 14% of the amount borrowed. a. Calculate the compensating balance amount. b. Calculate the effective interest rate? c. Calculate the effective interest rate if the interest paid in advance?On November 1, 2018, an entity borrowed P1,000,000 from Universe Global Bank and issued a promissory note for the same. The term of the loan is one year and discounted at 12%. The entity pledged accounts receivable of P2,000,000 to secure the loan. On November 1, 2018, what is the entry to record the pledge of accounts receivable? a. No entry needed b. Credit to accounts receivable, P880,000 c. Credit to accounts receivable, P1,000,000 d. Credit to accounts receivable, P2,000,000The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $2500 at 6% compounded daily for 2 years. What is the compound amount? (Round to the nearest cent.)
- The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.07% compounded semianually for 3 years. The compound amount is $. (Do not round until the final answer. Then round to the nearest cent as needed.)On October 31, 2021, Bundle Company engaged in the following transactions: (1) Obtained a P500,000, six-month loan from City Bank, discounted at 12%. The company pledged P500,000 of accounts receivable as security for the loan. What is the total cash received from the financing of receivables?Moon Company assigned P1,500,000 of accounts receivable as collateral for a P1,000,000 loan with a bank. The bank assessed a 4% finance fee and charged interest on the note at 6% at maturity. What would be the journal entry to record the transaction?